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FATCA Compliance Burden for U.S. Banks May Be Light
By Colby Adams
printUpcoming U.S. Treasury Department rules on a new law meant to curb tax evasion may mean only modest new compliance duties for American financial institutions, according to consultants. Under departmental preliminary guidance published last month, foreign banks with U.S. investments must disclose account beneficial ownership data to the Internal Revenue Service on their U.S. clients or pay a 30 percent withholding tax on any payment originating from the United States to their institution. The planned regulations, commonly known as the FATCA rules, after the original Congressional bill they were proposed under, could mean further know-your-customer duties for foreign financial institutions,...
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